Budget Day Shock: STT Hike Drags Nifty50 and Sensex
Budget Day Shock: STT Hike Drags Nifty50 and Sensex
Markets opened flat as Budget-day STT hike spooked traders; Nifty50 slipped below 24,800 and Sensex fell over 100 points, signaling a volatile session.
Indian equity benchmarks opened flat on Monday after a day of volatility sparked by the Budget's proposed STT hike on futures and options. Nifty50 slipped below 24,800, and the Sensex was down more than 100 points at the open.
As the Budget speech began, markets rallied briefly, with the Sensex climbing around 400 points, before turning negative again after the STT proposal was announced. The session saw wild swings, with losses widening to as much as about 1,100 points, before partially recovering to around a 600-point fall by mid-session. The day ended with the indices trading below key levels, including the Sensex slipping below the 81,000 mark for the first time in months.
Analysts cautioned that the move on STT could weigh on futures and options volumes and asked investors to stay nimble as policy signals emerge, with many turning to hedges as they reassess exposure.
